Oil prices drop after US-Iran ceasefire deal

ALBAWABA - Global oil prices have fallen sharply, while stock markets have increased after the announcement of a two-week ceasefire deal between the United States and Iran.

Washington and Tehran agreed to a conditional two-week ceasefire deal that includes the reopening of the Strait of Hormuz, which has been closed since the start of the war in February 2026.

The BBC reported that the price of benchmark Brent crude dropped by about 13 percent, reaching $94.80 per barrel, while U.S.-traded oil fell by over 15 hitting $95.75.

^{Oil prices dropped after the ceasefire. (Shutterstock)}

According to experts, despite the recent fall, however, oil prices remain higher than before the war. At the time, it was trading at around $70 a barrel.

Additionally, major stock indexes in the Asia-Pacific region jumped on Wednesday morning. For instance, Japan's Nikkei 225 gained by 5 percent while South Korea's Kospi jumped by nearly 6 percent. Hong Kong's Hang Seng was up by 2.8 percent, while the ASX 200 in Australia gained 2.7 percent.